Shanghai Vanke Strategy Based On The Core Competencies Of The "industrialized Housing"

Regardless of whether the operating environment seemed to be at the peak or trough, it was just superficial phenomenon that everyone could see. The key was to understand the two fundamental characteristics of the property industry in order to conduct in-depth research, grasp the nature of the market and make prudent judgments.Firstly, residential housing is a special commodity product with a combination of social and investment characteristics. It is not only a necessity of living, but is also an important element to improve living standards. Besides that, it can be a vehicle leading to investment returns. When its scarcity rises, the conflicts among basic needs, needs for improvement and needs for investment, will get intensified. Home affordability of low-income group is low, although they have more urgent needs for housing. Should there be any unusual rise in housing prices or prices exceed the purchasing power of low-to-medium income families, the government will undoubtedly take control measures.Secondly, China is now experiencing the fastest rate of urbanisation unprecedented in the world, while the citizens' purchasing power is also on a steady rise. The trend for market-oriented approach to meet demand for residential properties in most of the PRC cities thus becomes irreversible. No fundamental changes will take place amidst the colossal demand in the PRC's residential property market, and undoubtedly the prospects of the property industry will remain bright. As such, we could conclude the situation of the property industry in two points. Firstly, a market will only benefit from a steady growth. Fleeting, overheating market sentiment will not last very long and is unreliable. Secondly, a market supported by real demand will never slide into a recession or collapse in the face of unfavourable news.We believe that urbanisation brings enormous demand for residential housing. Property development is a resource-intensive industry. However, resources in China are in tight supply. As such, the original crude operating mode of the industry will eventually fade out. Enterprises who undergo revolution in advance will gain first mover advantage. Therefore, the Company strived to implement product innovation and mass production during the period under review, with an aim to maintain leadership in the industry revolution and cultivate future core competitive edge. This paper analyzed the Shanghai Vanke's strategic environment,give a research on the status of the Shanghai Vanke,analysis the resource situation and competitiveness of the situation.Based on Vanke Group with the business and strategic planning,Identify "based on the industrialization of residential," the strategic core competencies.Then design the strategic system of the promote of Residential industrialization,conduct analysis of the strategic advantage of the reorganization and management ideas. Finally, the paper give out the supporting measures to implement the core strategy.